Choosing a Payday Loan Company

If you are thinking about using the services of a payday loan company, then most likely your first experience will be the bombardment of fast cash promises and easy application procedure. In order to help you choose the one that works best for you, we have come up with some hints and tips to make sure you are making a good choice.

1.)  Check the interest rates
Payday loans are small loans that are given quickly, often without a credit check. The reason payday loan companies are able to grow and flourish is because they often charge very high interest rates. All payday loan companies are different, but if you can be savvy with your calculator then go for a payday lender that charges the least amount of interest available, to make sure that you can pay back what you borrow as quickly as possible.

2.)  Check the repayment terms
The next important part of a payday loan are the terms of your repayment. If the lender allows you to pay off the whole loan in full on payday – then great. However some payday loan companies will charge you a fee or a penalty if you repay early, which is why it is important to make sure that you can pay back as much and as soon as possible in order to avoid paying back fees, interest rates and other charges. Some payday lenders will also have hidden fees in the form of late payments, overpayments and random increases in interest rates so make sure that when you apply for a payday loan, that you are fully aware of the repayment terms to make sure that you know the terms that you are accepting  before you take the loan.

3.)  Search for customer experience
The great thing about the internet age is that any good or bad experience any customer has is available for reading on the world wide web. Rather than performing a Google search for a lender, search for reviews, feedback and opinion and visit forums to identify any unethical treatments, poor standards and broken promises to customers from payday lenders. Even though there are many good payday lenders out there, there are also many untrustworthy ones, and no one is going to advertise bad press! Research bad news rather than good news to whittle out any poor performing lenders before you apply.

4.)  Call customer service
This is an excellent technique in judging the care and attention to clients customers will receive. Before applying for a payday loan contact their call centre and ask some questions. If you notice that the phone just rings and rings, if no one gets back to you or you are on a very crackly line: leave that lender alone!

5.)  Make sure they are licensed
Law in the UK requires that payday loan companies have to adhere to a certain set of standards and rules before they can operate in the UK. Before choosing a company, make sure they are licensed and adhering to lending rules by looking out for a valid license number and a statement of responsibility at the office of fair trading website before trusting any promises offered by the website, and also to make sure your privacy is kept safe.

Note: if you are having finance problems, it is advised that you speak to a professional debt adviser before taking out any kind of loan.

Post a Comment

Previous Post Next Post